novation
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novation
- /noʊˈveɪʃən/
Where it comes from
Borrowed from Latin novātiō (“a renewing, rennovation”), from novō, from novus (“new”). Compare novel, novelty.
noun novations
- Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party. 1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission http://www.cftc.gov/opa/press98/opa4163-98-att.htm Netting by novation will occur immediately upon registration of the transaction in the SCM's name.
- A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted. An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments.
Translations
Talk about this word "novation." Wiktionary, via Micwyn, micwyn.com/word/novation. Accessed 6 Nov. 2026. novation. (n.d.). In Wiktionary, via Micwyn. Retrieved November 6, 2026, from https://micwyn.com/word/novation "novation." Wiktionary, via Micwyn. Accessed November 6, 2026. https://micwyn.com/word/novation.Cite this
@misc{novation_2026,
title = {novation},
howpublished = {Wiktionary, via Micwyn},
year = {2026},
url = {https://micwyn.com/word/novation},
urldate = {2026-11-06}
}
